In this article, we will take a look at the 12 Best Cloud Stocks to Buy According to Wall Street Analysts.
As a result of the impending mass migration to the cloud, cloud computing-related offerings are now the fastest-growing segment of the IT market. Although cloud computing grew significantly in the 2010s, the next-generation IT industry is still in its infancy. Recently, companies all over the world have been moving their operations to the cloud, where they store digital data and services in remote data centers and access them online.
According to a report from MarketsandMarkets, the global cloud market is expected to grow from $1,091.4 billion in 2024 to $1,256.8 billion by 2025 at a 15.1% year-over-year increase. However, there are obstacles, particularly for small and medium-sized enterprises (SMEs), due to the rising costs of cloud services and possible security threats.
As cloud cybersecurity threats increase, security and compliance will take precedence. Industry-specific cloud solutions will become more and more in demand, with retail predicted to grow at the fastest rate in the upcoming years. As a result, it is expected that spending on IT services will increase from $1.59 trillion in 2024 to $1.74 trillion in 2025.
With that in mind, we will now take a look at the best cloud stocks to buy according to Wall Street analysts.
Our Methodology
For this list, we noted down cloud stocks based on analyst estimates as of July 10. We ranked the top 12 stocks in ascending order based on their average share price upside potential. Additionally, we included hedge fund sentiment for each stock, as of Q1 2025, to offer readers deeper insights.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Snowflake Inc. (NYSE:SNOW)
Analyst Upside: 2.85%
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) ranks among the best cloud stocks to buy according to Wall Street analysts. On June 12, UBS reaffirmed its Buy rating on Snowflake Inc. (NYSE:SNOW) with a $265 price target. The rating affirmation comes after UBS analysts attended the Databricks conference in San Francisco, where they spoke with 15 clients and partners and took part in the Investor Day.
The firm pointed out that although Snowflake Inc. (NYSE:SNOW) and Databricks are directly competitive, the conference did not spark new concerns about Snowflake’s place in the market. According to the firm’s perspective, industry-wide investments in the data layer remain strong. Despite their rivalry, both companies stand to gain from this continuing investment trend.
According to UBS, the overall mood during the Databricks conference was in favor of the idea that significant investments in data infrastructure would act as a tailwind for Snowflake Inc. (NYSE:SNOW).
Snowflake Inc. (NYSE:SNOW) is an American cloud-based data storage company that operates a platform built on Amazon Web Services, Microsoft Azure, and Google Cloud. It also provides Snowflake Cortex with a set of AI capabilities that employ large language models to analyze unstructured data.
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